Comcast, Cox to receive AT&T stock

MattAndrejczak

NEW YORK (CBS.MW) -- AT&T said Friday that Comcast Corp. and Cox Communications each plan to exchange their shares of ExciteAtHome for stock in AT&T valued at $2.9 billion.

Once the transaction is consummated, AT&T would own a 38 percent stake in ExciteAtHome
ATHM, -4.93%
on a fully diluted share basis, it said. It currently holds a 23 percent stake. In addition, its voting interest in ExciteAtHome would increase to 79 percent, up from 74 percent.

The number of AT&T shares to be swapped will be determined by their average price during a 30-day period trading period that began in mid-December.

An AT&T spokeswoman said the deal would be completed in early February. Comcast and Cox would each own roughly 1 percent of AT&T's 3.8 billion common shares outstanding following the transaction.

The stock exchange dates back to a March agreement that gave Comcast
CCZ, +2.94%
and Cox
COX, +265.38%
the rights to use ExciteAtHome's platform to deliver high-speed Internet access to residential customers.

As part of the agreement, Comcast and Cox were entitled to sell 60 million shares of ExciteAtHome to AT&T for $48 a share between Jan. 1, 2001 and June, 4, 2002.

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